Annual borrowing, debt and liquidity management decision
Article 3
1. The Commission shall adopt a borrowing, debt and liquidity management decision which sets the framework comprising certain maximum limits for the borrowing and debt management operations and grants the authorisation for liquidity management operations, that can be entered into over the course of the calendar year (‘annual borrowing decision’). 2. The annual borrowing decision shall set out the following parameters: (a) the maximum annual amount of long-term funding based on multiannual schedule of expected disbursements under the programmes and of refinancing needs; (b) the maximum outstanding amount of short-term funding, including through the issuance of EU-Bills; (c) the maximum final outstanding amount per issuance reflecting the concentration risk at maturity; (d) the maximum average maturity of long-term funding; (e) if appropriate, the maximum outstanding amount of own issuances which can be held on the Commission’s own account and made available to counterparties through repurchase transactions, to support the secondary market in Union securities or to mobilise short-term funding; (f) authorisation of liquidity management operations through the use of money market instruments as referred to in Article 8. 3. The following factors shall be taken into consideration for the preparation of the annual borrowing decision: (a) the requirements stemming from the underlying basic acts, in particular basic acts referred to in Article 220(1) of the Financial Regulation; (b) the payment obligations to service outstanding debt and repayment of the principal, in accordance with the annual work programme and taking into account the financial programming; (c) the compatibility with the limits set out in Council Decision (EU, Euratom) 2020/2053 ( 13 ) and, as appropriate, Council Regulation (EU, Euratom) 2020/2093 ( 14 ) , and with the limits of maximum duration or maximum average maturity set out in the underlying basic act. In respect of NGEU, those limits shall be those set out in Article 6 of Decision (EU, Euratom) 2020/2053 for the additional own resources ceiling of 0,6 percentage points of the Member States’ GNIs, and, for the case of planned repayment of borrowing from the Union’s budget, with the limit set out in Article 5(2), third subparagraph, of that Decision; (d) the loan maturities set out in the loan agreements concluded between the Commission and the beneficiary country; (e) multiannual schedule of disbursements under the relevant policy programmes and of refinancing needs taking into account broader supply and demand considerations; (f) other factors relevant for the determination of the borrowing and debt management operations. 4. The annual borrowing decision shall be adopted before the commencement of the period covered by it. 5. The annual borrowing decision may be amended in particular in case of serious risk that the maximum average maturity could not be respected for reason of under-execution of issuances of the amounts of long-term funding or in case of the change to one or more factors referred to in paragraph 3. 6. The Commission shall communicate the annual borrowing decision to the European Parliament and the Council.